US Department of Labor applauds President Trump’s action to expand retirement investment options

WASHINGTON – U.S. Department of Labor Secretary Lori Chavez-DeRemer and Deputy Secretary of Labor Keith Sonderling released the following statements today applauding President Trump’s latest Executive Order, “Democratizing Access to Alternative Assets for 401(k) Investors.”

“The federal government should not be making retirement investment decisions for hardworking Americans, including decisions regarding alternative assets,” Secretary Chavez-DeRemer said. “The Department of Labor already took action to rescind the Biden Administration’s guidance that disadvantaged crypto investments. This Executive Order further supports our efforts to improve flexibility and eliminate unfair one-size-fits-all approaches, and I applaud President Trump for taking decisive action.”

“All American workers should be able to look forward to a secure and prosperous retirement. Today’s Executive Order directs the Department of Labor to level the playing field for all Americans saving for retirement by breaking down barriers to investment opportunities previously accessible only to certain pension plans and the very wealthy,” Deputy Secretary Sonderling said. “American workers should be able to make choices that best meet their personal financial needs, and President Trump’s Executive Order will empower them to do that.”

The Executive Order directs the department to reexamine its guidance regarding fiduciary decisions, ensuring asset allocation funds that include alternative asset investments are available to plan participants. It also directs the Secretary to clarify the department’s position on alternative assets, including the appropriate fiduciary process associated with offering asset allocation funds containing alternative asset investments under the Employee Retirement Income Security Act of 1974.

The Secretary is also directed to prioritize actions that curb frivolous ERISA litigation, which can constrain fiduciaries from applying their best judgment when selecting investments and investment options.  

Learn more about the Executive Order.